Burn Rate Calculation
Burn rate measures cash spending velocity.
Key Metrics
- Gross Burn: Total monthly expenses
- Net Burn: Expenses minus revenue
- Runway: Months until cash runs out
Burn Rate Calculator
Calculate cash burn rate and runway for startups. Essential metric for financial planning and fundraising.
Net Burn Rate
$netBurn
Monthly cash burn
Gross Burn Rate
$grossBurn
Total monthly expenses
Runway (Months)
runway
Months until out of cash
💡 Burn Rate Insights
• Ideal runway: 18-24 months for fundraising buffer
• Minimum runway: 12 months before next fundraise
• Net burn = Gross burn - Revenue
• Track burn efficiency: burn rate vs revenue growth
• Reduce burn before revenue runs out
Frequently Asked Questions
What is burn rate?
Burn rate is how fast a company spends cash. Gross burn = total monthly expenses. Net burn = expenses minus revenue. Example: $120k expenses, $50k revenue = $70k net burn. Track monthly and aim for 18+ month runway before fundraising.
What is a good burn rate?
Good burn depends on growth and funding stage. Benchmark: burn should be justified by growth. If burning $100k/month, ARR should grow $300k+/month. Rule: Growth Rate % should be 3-5x Burn Multiple. Maintain 12+ month runway minimum.
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